Solve the problem.
-Randy Hunter buys a $30,000 T-bill at a 5.4% discount for 24 weeks. Find the interest earned on the T-bill. (Assume 52 weeks per year.)
A)$373.85
B)$747.69
C)$1,495.38
D)$822.46

Question

Quizplus · Accepted Answer

The interest earned on a T-bill can be calculated using the formula: Interest = Face Value x Discount Rate x (Time in weeks / 52). Here, the face value is $30,000, the discount rate is 5.4% (or 0.054), and the time is 24 weeks. So, Interest = $30,000 x 0.054 x (24/52) = $747.69.

Solve the Problem. -Randy Hunter Buys a $30,000 T-Bill at a 5.4% Discount